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Overhead Setup & Billing with Dynamics GP Project Accounting

I recently discovered two aspects of Overhead for Project Accounting worth exploring:

1.  The system will only look to the timesheet setup to calculate overtime. I wanted the timesheet rates to come from the cost category and the overhead to come from the project; however, that is not an option.

Dynamics GP will look for the overhead amount if being used based on the settings you have configured in Microsoft Dynamics GP menu | Tools | Setup | Project | Timesheet.

Depending on the setting selected for Default Pay Codes From, this is where it will look:

Budget – Cards | Project | Project | Budget | Expansion on Cost Category | Expansion on Overhead

Employee – Cards | Payroll | Employee | Project Button

Cost Category – Cards | Project | Cost Category | Overhead Button

Exception:   When you using rate tables under the billing settings, it overrides ALL settings for overhead. It would not matter what you set up under Dynamics GP menu | Tools | Setup | Project | Timesheet Setup if rate tables were being utilized. If you have a project that for some reason was not using rate tables, it would then go to the setting under Tools | Setup | Project | Timesheet Setup to see where to pull the overhead/pay codes.

2.  Overhead is only utilized for cost purposes. Overhead is not billed. Billing transactions are calculated based on extended cost rather than the total cost.

In order to bill overhead it must be built into the markup percentage. You will need to enter the markup percentage equal to your overhead rate. For example, if you have a 25 percent overhead rate, you would want to enter 25 percent as the markup percentage.

Since you are using a rate table, that table will need to be updated. Then any new transactions entered would be billed at the correct rate. Cost transactions already posted would need to be written up during billing.

For more information on how to set up overhead and billing with Dynamics GP Project Accounting, please contact BKD’s Dynamics GP Support Center.

This post was written by:

Cynthia brings more than five years of experience as a project manager for accounting software implementation projects on the BKD Technologies Microsoft Dynamics GP team. She has achieved the Certified Master designation for both Dynamics GP and eEnterprise Application, and she has 25 years of public accounting experience.

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